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Ur+~NORta CoveN~Nrs. Borrower a~d l.e~dtr cavenanl and agree as follows:
1. Paymeal oi Principal sod lotereaf. Borrower shail promptly pay when due the principal of and interest on the
indebtednets evidenced hy the Note, prepaymtnt and late charges as provi~kd in the tiote. and the principal of and interes!
on any Futuro Adva~ces secured by this Mortgage.
2. F~ds ~or Tues snd luwwnce. Subject to appiicable law or to a written waiver by [.ender, Borrower shall pay
to I.e~der on Ihe day monthly i~stallments of principai a~d interest are payable under the Note, until tht Note is paid in full,
a aum (herein "Funds") equal to one-twelfth of the yea~ly taxes and assessrrnnts which may attain priority over this
Mortgage. and ground renta on the Property, if any, plus one-twelfth of ycarly premium ins~aliments tor hazard •insurance.
plus one-twclfth of yearly premium ir:-•^~~+nents for mortgage insurancc, if any. all as reasonably estimated initially and from
time to timc by Lender on the basis of assessments and bills and reasonable atimatcs thereof.
"il~e Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if !_ender is such an institution). t.ender shall apply the Funds to pay said taxes, assessmc~~~s,
insurance premiums and ground re~ts. t.ender may ~ol charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said asstssments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits i.ender ta make such a charge. Borrawer and t~nder may agree in writing at the time uf exe~:ution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requiros such interest to k~e~ paid. l.cnder shall not be rcyuired to pay Borr~wer any interest or earnings on the Funds. I.ender
shall give to Borrower, without charge, ad annual accounting of the Funds showing credits and debits to the Funds and the
purpcue for which each debit to the Funds was made. 'Il~e Funds are pleciged as additional security for the sums securecl
by this Mongage. - ~
If the amount of the Funds held by Lender, logether with the futurc monthly instatlments of FunJs payable prior to
the due dates of Iaxes, assessrnents, insurance premiums and ground rents, shall exceed the amount required to pay said ta~ces.
asussments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or creditcd to Borrower on monthly installmcnts of Funds. If the amount of the Funds
held by Le~der shal! not be suflicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lcnder to Borrower requesting payment thercot.
Upon payment in full of all aums secured by this Mortgagc, I.cndcr shall promptly rcfund to Borrower any Funds
held by l.ender. I[ under paragraph IR hereof the Propcrty i~ sold or ~he Proper~}• is otherwisc acyuired by Lender, Lender
shall apply, no later than immediately prior to the sale ot the Propcrty or its acquisition by l.ender, any Funds held by
Lender at the time ot application as a creJit against the sum~ secured b}' th~s Mortgage.
3. AppUcation of Payments. Unless applicable law provides otherwise, all payments received by l.ender unJer the
Note and paragraphs I and 2 hereof shall be applied by I.cnder first in payment of amoienis payablc to Lcnder by Borrower
under paragraph 2 hereof, then to interesl payablc on~ the Notc, then to 1hc principal of the Note, and thcn to interest and
principal on any Future Advances. •
4. Charges; Lkns. Borrower shall pay all ~axes, asxssmcnts and othcr charges. fines and impixitions auributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thercof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly fumish to Lender receip~s evidencing such payments.
Borrower shall promptly dixharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrce in writing to the payment ot the obligation secured by
such lien in a man?er acceptable to Lender, or shall in g«xi faith contect such lien by, or defenJ enforcement of such lien in, .
legal proceed'i~sg~which operate to prevent the enforcement ot the I~en or torteiwre of tfie Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvcments now• cxisting or hereafter erccted on the Property insured y
against loss hy fire, hazards included within the term "extended coverage", and such other hazards as I.ender may req~ire '
and in such amounts anJ for such, periods at Lender may, rcyuirc; provideJ, that Lender shall not reyuirc that the amount of
such rnverage exceed that amouN of coverage required to pay the sum~ secured by this Mortgage.
The insurance carrier providing thc insurance shall be~chosen by Borrower subject to approval by I_ender, provided,
~ that such approval shall not be unreasonably withheld. All premiumc on insurance policies shall be paid in the manner
~ provided under paragraph 2 hereof or, if no1 paid in such manner, by Borrower making payment. when due, directly to thc
; insurance carrier.
C All insurance policies and renewals thereo( shall he in [orm acceptable to Lender and shall include a stanJard mortgage
~ clause in favor of and in form acceptable to l.ender_ Lender shall have the right to hold ~he policies and renewals thereaf.
and Borrower shall promptly furnish to Lencier all renewal notices and all receipts of paid premiums. ln the event of loss,
, Borrower shall give prompt noticiE to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
~ by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied Io restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. I( such restoration or repair is n~t ecanomically feasible or if the security of this Mortgage would
be impaired, the insurance procceds shall be applied to the sums xcureJ by this Mortgage, with the excess, if any. paid
to Borrowcr. If the Property is abandoned by Borrower, ar if Borrower fails to respond to I_ender within 30 days from the
date notice is mailed by Lender to Borrower ~hat ~he insurance carrier otTers ~o settle a claim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds at i.enJer's option either to restoration or repair of the Property
or to the sums secured by ~his Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or poslpone the due date of the monthly installmentc rcferred to in paragraphs I and 2 hereof or change the amount ot ~
such installments. It unJer paragraph I8 hereof the Property is acyuired by Lender, all right, tiUe and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from Jamage to Ihe Property prior to the sale
or acyuisition shall pass to l.ender to the extent o[ the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservatlon aod lllaintenance of Property; I.easeholds; Condominiums; Planned Uni! Developments. Borrower
shall keeQ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Properiy _
and shall comply with the provisions of any lease i( th~s Mortgage is on a Icauhold. If this Mortgage is on a unit in a
condominium or a planned un~t development, Borrower shall perform all of Borrower's obligations under the declaration
~ or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. It a condominium or planned unit development
nder is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporateJ into and shall amend and supplement the covenants and agreements of this Mortgage as i[ the rider
were a part hereof. ~
7. Protection of I.eoder's Security. If Bortower fails to perform ihe covenants anJ agreements contained in this '
Mortgage, or if any action or proceeding is commenced which ma~~rially atiects Lender's interest in the Property,
~t including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a :
~ bankrupt or decedent, then (xnder at 1_ender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take such action as is necessary to protect Lender
s~ interest, induJing, but not limited to, disbursement of
~ reasonable attorney's fces and entry upon the Property to make repairs. If I.cnder required mortgage insurance as a
condition of making the loan xecured by this Mortgage. Borrower shall pay the premiums required to maintaio such -
insurance in efiect unlil such time as the requ::ement for such insu~ance terminates in accordance with Borrower s and
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